Oerlikon Group Q2 sales remain flat

06 Aug '15

3 min read

For the three months to June 30, 2015, sales at textile machinery manufacturer Oerlikon Group stayed flat from the same quarter of 2014.

In a press release, Oerlikon said Group's sales amounted to CHF 781 million in the second quarter of 2015, at the same level as in corresponding quarter of last year.

In the second quarter of 2015, the Group's order intake increased by 1.0 per cent to CHF 731 million compared to CHF 724 million in the prior year second quarter.

At constant exchange rates, sales rose higher by 5.9 per cent year over year to CHF 827 million, while EBITDA stood at CHF 132 million, correlating to an EBITDA margin of 16.9 per cent.

Oerlikon added that this marks the 14th consecutive quarter where the EBITDA margin exceeded 15 per cent, benefitting from its ongoing operational excellence initiatives and prudent cost management.

EBIT for the reporting quarter was however down at CHF 86 million as against CHF 92 million in the second quarter of 2014.

“The second quarter performance resulted in a rolling 12-month Oerlikon return on capital employed of 10.4 per cent,” it explained.

In the second quarter, Oerlikon succeeded to extend the maturity of its syndicated credit facility to June 2017 at adjusted favourable interest rates.

Despite the ongoing market normalisation, the Manmade Fibres Segment witnessed orders and sales for the quarter under review at around the same levels seen in the previous year's second quarter.

However, the segment maintained good operating profitability with an EBITDA of CHF 37 million for the second quarter of 2015, corresponding to a margin of 17.6 per cent.

“The margin was lower than achieved in the same quarter from last year, but at the same level as seen in the preceding quarter,” the company informed.

But, EBIT at CHF 32 million for the Manmade Fibres Segment tanked from CHF 53 million from the preceding year second quarter.

According to Oerlikon, the Manmade Fibers Segment strengthened its presence and business offering in the polycondensation market with the announced joint venture with Huitong in China.

“Furthermore, the Segment is increasing its efforts to grow its business outside of China and is seeing some positive sentiments in markets such as India,” it observed.

To improve proximity to customers, a new service center in Dalton, USA and a new technology center in Chemnitz, Germany were opened.

In the second quarter of 2015, Oerlikon launched EvoTape to enable greater process stability in efficient tape extrusion for the production of carpets, agricultural textiles and geotextiles.

The company further added that it also introduced EvoQuench to increase production efficiency for microfibre filament yarns.

Oerlikon maintained its outlook for 2015 unchanged, as it expects the global economic picture to continue to be mixed.

“The US is forecasted to grow in 2015, while Asia adjusts further to slower growth rates and Europe needs to resolve its sovereign debt issues,” it noted. (AR)

Fibre2Fashion News Desk – India

More Oerlikon Textile GmbH & Co News... More Textiles News - Switzerland...